A disagreement has emerged between Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell over whether to preserve emergency lending programs designed to shore up the economy. Mnuchin wrote to the Fed demanding the return of money the government provides the central bank for lending to certain markets. The Fed issued a statement saying the "full suite" of measures needs to be maintained. While Mnuchin said he is merely carrying out the law prescribed by the Cares Act, markets are nervously eyeing signs of disagreement between the top two U.S. economic policymakers.  

Top little, too late? General Motors plans to launch 30 all-electric models worldwide by 2025 at “all price points”, Mary Barra, chief executive, said on Thursday. The company will also increase investment in electric vehicles from $20bn to $27bn over the next five years and accelerate the rollout of existing EV brands, including the GMC Hummer and Cadillac Lyriq.  This comes as Tesla’s market cap fast-approaches $500bn as it prepares to enter the s&p500 index next month.

Rising prospects of a Covid-19 vaccine are threatening to kill off the bull market for gold, after an epic two-year rally that pushed the precious metal to a record high in the summer. Gold prices have already fallen about 10 per cent since their August peak above $2,000 a troy ounce, as confidence gradually returned to asset markets. This could be the start of a sustained slide for the metal, after two successful trials for Covid-19 vaccines emerged in November. Some bulls have not given up, pointing to a possible rise in inflation that typically boosts the precious metal. But a recovering global economy dents the appeal of gold, commonly used as a haven in times of turmoil.

With Northwest Quadrant Wealth Management a Registered Investment Advisor I am Josh Fenili.